Long Answer- Class 10 – Social Science -Economics-Chapter 4 : Globalisation and the Indian Economy

Long Answer- Class 10 – Social Science -Economics-Chapter 4 : Globalisation and the Indian Economy

Q1. Explain any three ways by which MNCs exercise control on production.

Ans :  The following are the three ways in which multinational corporations are spreading their products in different ways

a. Buying up the Local Companies: This is most common route for MNC investment and expanding production. MNCs can do so because they have huge wealth.

For example: Cargill Foods an American MNC has bought Indian company named Parakh Food. Now the control on the large marketing network and the four oil refineries has shifted to the Cargill Food. Cargill Food has now become the largest producer of edible oil in India.

b. Joining hand with local companies: Sometimes the MNCs join hands with the local companies and do the production. In this process, the local companies get twin benefits:

(i) they get foreign investment and

(ii) MNCs provide newer technology to them for the production. For example:

In 1995 Ford Motors an American company joined hand with the Indian company called Mahindra and Mahindra (manufacturer of jeeps and trucks).

c. By placing orders: Sometimes MNCs just place orders with small producers around the world for the production of garments, footwear and sports items.

After that, the products are supplied to the MNCs and sold under the brand name of the MNCs,

Q2. How is foreign trade interconnecting the markets in different countries? Explain with examples.

Ans :Foreign trade means trade with other . countries. When we trade with other countries then we connect with the markets of different countries.

For example, Chinese toys in the Indian market. In this process the goods and services and produced and sold at global level.

There is movement of technology and people between the countries. It gives opportunity to the local producers to reach beyond the domestic market.

Buyers get different choice, price and quality. An MNC from USA producing the industrial equipment is designing its product in the research centres of the US, its components are manufactured in China, the assembling and the export work is done from Mexico and Eastern Europe and its call centres are there is India.

Q3. How has globalisation benefitted India? Explain with five examples.

Ans : The process of globalisation has benefitted India in the following ways: Consumers:

 a. They get different brands of the product.

b. They get the goods and services at cheaper rate.

c. They get better quality products.

Producers:

a. The local producers joining hands with MNCs get a chance to expand their business.

 b. They get the newer technology from the MNCs.

c. They get the investment done by MNCs in their companies.

Workers:

a. MNCs helped in reducing the unemployment in India.

b. It provided job opportunities to the people,

c It helped in improving the standard of living of the workers.

Q4. How have our markets been transformed in recent years? Explain with examples.

Ans : This is true to say that now there is wide ranging choice of goods are available in the Indian markets.

It is possible due to the policy of liberalisation, privatisation and globalisation followed by India since 1991. Before 1990, we had limited brands and limited variety of products in the market but now the market is flooded with variety of brands.

For example, earlier  we had just Ambassador and Fiat cars on the Indian roads but now we have so many brands from all over the world.

 The same happened in the field of TV, mobile phones, garments etc. ,

Q5. Describe the major problems created by the globalisation for a large number of small producers and workers.

Ans :The major problems created by the globalisation for a large number of small producers and workers are:

Small producers: The local small producers are not able to compete with the MNCs and they have to shut down their business. It is mainly due to the following factors:

 a. Lack of newer technology.

b. MNCs have huge wealth to influence the price and market condition.

Workers:

 a. Due to the globalisation the MNCs don’t hire the workers on permanent basis.

 b. They use flexibility in labour law policy.